Al-Khwarizmi Weekly #2: Crypto & Blockchain Weekly News Summary
Welcome to Al-Khwarizmi Weekly, your one-stop source for the latest news in the world of blockchain, cryptocurrency, and other financial technology. We are happy that only in the past week, this newsletter got 700+ subscribers on LinkedIn alone. We will continue to bring you all the latest industry news and developments for you to read in ~ 5 mins.
Middle East News
The License of BitOasis Crypto Exchange Has Been Suspended By Dubai Crypto Regulators
Dubai has been fairly crypto-friendly, but the BitOasis crypto exchange license has been revoked by Virtual Assets Regulatory Authority (VARA). This was a result of not meeting mandates. On July 10th, the firm was alerted twice, informing BitOasis of the situation. VARA expressed that on April 12th, BitOasis was granted a conditional license that allowed them to operate if they fulfilled certain requirements within a 30-60 day timeframe. However, the regulator claims these requirements were not met.
BlackRock CEO Larry Fink Has High Hopes For Bitcoin
After some traditional finance giants requested approval to launch spot exchange-traded funds (ETFs) on Bitcoin in the United States, the token surged to a new high. Investors were optimistic about the news as this could open up doors for more mainstream interest. Fink, the CEO of BlackRock, referred to Bitcoin as an “International asset.” With many countries interested in digital currencies, this statement has yet to be proven false. As the helm of one of the largest money management firms in the world, Fink’s opinion carries a lot of weight.
Thirty Trillion Worth of Wealth Could Enter Into Crypto, Suggests Bloomberg Analysts
Bloomberg ETF analyst Eric Balchunas has suggested that approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission could potentially release $30 trillion worth of capital into the Bitcoin market. The stated figure corresponds to the approximate value of assets managed by U.S. financial advisors who are open to investing in Bitcoin via a regulated exchange-traded fund. Larry Fink explains, “The foundation of BlackRock is about hope, you invest for retirement because you believe tomorrow is better than today.” If Bitcoin’s value propositions hold, it can prove to become an alluring asset for non-crypto native investors.
— Michael Saylor⚡️ (@saylor) July 5, 2023
How Macroeconomics Is Supporting Bitcoin’s Price of $30,500
Undoubtedly, major news regarding potential inflows of capital has led retail investors to support Bitcoin’s price but macroeconomics are also playing a role. US inflation is expected to reach its lowest point in more than two years. With more retail capital entering the market, demand is expected to rise for Bitcoin as it approaches its halving year in 2024.
Is The Wild West Days of Crypto Over?
The stigma of crypto being used for illicit activities and headlines of hacks have plagued the industry for years. With more corporate interest and stricter compliance, it appears that the Wild West days are coming to an end. According to Chainalysis Report, major wallets that have been identified as used for scams and hacks have remained dormant despite the uptick in Bitcoin’s price this year. Impersonation scams are the new form of deception as nearly 50% more people have fallen victim. Overall scams are down 70%, but vigilance is still necessary.
“Google It” – Hacker Leads Trail of $9M From a DeFi Attack
After using VPNs and having experience with computer security engineering, Shakeeb Ahmed stole millions of dollars from a decentralized exchange. In a frantic state of intrigue, Ahmed searched for his crime on Google and for terms such as “defi hacks FBI”, “wire fraud” and “how to prove malicious intent.” This led to the trial of evidence for law enforcement, leading him to be caught and indicted. Ahmed also attempted to negotiate with the exchange while pointing out vulnerabilities. His self-perceived virtuous act and demand for payment for his services failed.
WonderFi Closes Merger Deal To Become Leading Crypto Platform In Canada
With the alias Mr. Wonderful, Kevin O’Leary has been vocal about his support for cryptocurrencies. As a Shark Tank investor, he has seen it as a good investment for the long run. Major Canadian cryptocurrency trading platforms, WonderFi, CoinSmart, and Coinsquare, are set to merge and create the largest digital platform in the country. With the strategy to consolidate the cryptocurrency industry in Canada, WonderFi should offer more liquidity and better trading options for Canadians. O’Leary explained that the “rogue” days of crypto are coming to an end.
Chinese CBDCs Receives An Update Via Offline Wallets
Fears over CBDCs are largely derived from the Chinese government’s tendency to monitor and control citizens. Expectedly, offline wallets are being developed that will allow users to store assets on their own. The term “offline wallet” may be true, but these wallets are still primarily used for state-controlled money. Nevertheless, this innovation will enable an offline SIM card-based digital yuan hard wallet solution. This will enable users to pay with the central bank digital currency (CBDC) with lower-tiered phones such as 2G and serves similarly as a portable bank account.
This wraps up this week’s crypto news. There is still a lot to learn and more updates to come in the next few weeks. Keep an eye out for significant announcements, market trends, new regulations that could affect prices, developing technologies, and possible partnerships between crypto companies. For further reading on current events in the cryptocurrency world or to keep up with the latest developments, check out new our blog.